Crypto is coming to Betterment.
Betterment, the largest independent digital investment advisor in the U.S., announced Feb. 8 that it has entered into an agreement to acquire Makara, an innovative manager of cryptocurrency portfolios. Betterment said in a statement the acquisition will provide consumers and financial advisors the ability to invest in “expert-built, diversified crypto portfolios alongside their existing investments, through an easy-to-use customer experience.”
Terms of the deal—actually between Betterment LLC’s parent company, New York-based Betterment Holdings, Inc. and Argonaut Asset Management Inc., doing business as Makara—were not disclosed. Makara’s team of crypto experts and engineering talent will join Betterment upon the closing of the transaction, expected to happen later this quarter. Makara, born in 2020 when it was spun off from Strix Leviathan, is one of the first SEC-registered investment advisers to offer automated cryptocurrency portfolios.
“Crypto is here to stay and Betterment wants to live our promise of long-term diversification and to provide our customers with the best variety of assets in the marketplace,” said Sarah Levy, Betterment’s CEO. “Makara is unique in offering consumers managed crypto portfolios combined with the guidance and ease-of-use that have defined Betterment. Makara is to crypto today what we are to traditional investing, since pioneering robo-investing a decade ago.”
The statement said the addition of Makara’s offerings to Betterment’s platform will strengthen and further differentiate Betterment’s product suite (which also includes Betterment at Work, its full-service 401k recordkeeping platform). As Betterment allows for consumers to invest in equity portfolios, similarly, Makara offers simple, expert-managed crypto portfolios and education to investors through passive exposure to dozens of vetted cryptocurrencies via its thematic baskets, which are tailored to meet different investment goals and interests.
“We are thrilled to be joining Betterment,” said Jesse Proudman, Makara’s Co-Founder and CEO. “We developed Makara to bring an easy and accessible long-term investing approach to cryptocurrencies. Combining our crypto expertise with Betterment’s scale will accelerate the growth of the platform with both retail investors and financial advisors.”
Betterment said 2021 was a year of triple-digit growth in net deposits, and that this acquisition represents another milestone in the company’s expansion.
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